KUALA LUMPUR Feb 26 Malaysia's Hong Leong
Financial Group, controlled by the country's sixth
richest man Quek Leng Chan, has failed to take its 79
percent-owned investment banking arm Hong Leong Capital Bhd
private as shareholders hold out for a better offer.
Hong Leong Financial told the stock exchange late on Monday
that it acquired only a 2.24 percent stake, or 5.5 million
shares, during the offer period, bringing its total ownership in
the investment bank to just 81.3 percent.
Hong Leong Capital's shares have traded consistently above
the 1.71 ringgit per share offer price since the deal was
announced on Jan. 14. The stock last traded 35 percent above the
offer price at 2.31 ringgit.
Hong Leong Financial needs to own 90 percent of the stock
before it can make a mandatory general offer for the shares it
does not own.
It will have to wait for six months before making a new
offer, according to stock exchange regulations.
(Reporting by Niluksi Koswanage; Editing by Richard Pullin)